- The European Green Deal is a set of policy initiatives suggested by the European Commission which aims to reduce greenhouse gas emissions by 55% by 2030, and achieve net-zero by 2050.
- The index is not intended to select the stocks of virtuous companies in the ESG areas but rather to take advantage of the potentially beneficial financial effects for companies due to their role in implementing the European Commission plan.
- EUGD will be classified as SFDR 8.
July 2023, London
HANetf, Europe’s first and only independent white-label UCITS ETF and ETC platform, and leading provider of digital asset ETPs, is delighted to announce that it has launched European Green Deal UCITS ETF (EUGD) on London Stock Exchange and Deutsche Börse XETRA.
EUGD, which tracks Societe Generale’s SGI European Green Deal ESG Screened NTR Index, seeks to provide exposure to the companies that should benefit from the European Green Deal.
The European Green Deal is a landmark new economic strategy set forth by the European Commission, which aims to reduce greenhouse gases by 55% by 2030 and achieve carbon neutrality by 2050. The plan requires the mobilisation of €1 trillion in sustainable investments over the next decade, representing 30% of the EU budget (under the Multiannual Financial Framework and NextGeneration EU).
Beyond making Europe the first climate neutral continent worldwide, the Deal is expected to create new opportunities for innovation, investment, and jobs. Additionally, all 27 EU Member States have committed to the Deal.
The European Green Deal UCITS ETF targets stocks, selected by Societe Generale’s research department, from within 4 key sectors that could benefit from this agreement:
- Clean Energy: The EU has set a 45% target for renewable energy generation by 2030 (up from 22% in 2021), requiring substantial investment.
- Sustainable Mobility: 90% reduction in transport related emissions by 2050 is needed, with investment in rail, hydrogen, electric vehicles and biofuel key.
- Building & Renovation: EU commission want to double the current rate renovation of public & private buildings, improving energy efficiency.
- Circular Economy: Potential for recycling & waste management companies to benefit from the 70% waste recycling target set by the EU by 2030 (up from 55% currently).
Hector McNeil, Co-CEO and Co-Founder of HANetf, comments: “We are delighted to be working with Societe Generale to launch the European Green Deal UCITS ETF (EUGD), which will provide investors with a means of accessing the companies that will be central to Europe’s net-zero transition. Societe Generale have been among European leaders in the financial services sector for over 150 years, and we look forward to working with them on EUGD. The ETF tracks the SGI European Green Deal ESG Screened NTR Index, with stocks selected by Societe Generale’s research team.
“The European Green Deal is set to reshape the European Union’s economy over the coming decades, as member states strive to achieve climate neutrality by 2050. This will require considerable investment and should promote the growth of companies that have a role to play in the transition.”
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